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Technical
Put-Call Parity
C − P = S − K/(1+r)^t (ignoring dividends)
Definition
Put-call parity establishes the relationship between put and call options with the same strike and expiration. Formula: Call - Put = Stock - PV(K). Violations indicate arbitrage opportunities.
Related Topics
#options pricing
#arbitrage
#risk-neutral valuation
#derivative relationships
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Category: Technical
Technical analysis focuses on price patterns, chart analysis, and mathematical indicators to predict future price movements.
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